The Hindu Business Line : <I>Illegal sugar trade with Bangladesh?</I>

Industry & Economy - Economic Offences
Agri-Biz & Commodities - Sugar
Government - Politics
Web Extras - Exports & Imports

Illegal sugar trade with Bangladesh?

Our Bureau

SENA LEADER'S CHARGE

Lack of restrictions on traders or stockists is reportedly encouraging diversion to Bangladesh.

Mumbai , May 9

A huge difference in sugar prices between India and Bangladesh has prompted some traders to unofficially export the commodity to the neighbouring country.

So far about 1.5 lakh tonnes of sugar have been exported to Bangladesh through the West Bengal route, trade sources alleged. Bangladesh is faced with a shortage in supplies.

"There is a huge difference in local prices between two countries and our traders are taking advantage of it. Traders are lifting sugar through free sale quota from mills and export it illegally to Bangladesh," a local trader charged.

Domestic prices of medium grade (M-30) sugar in Bangladesh are ruling around Rs 35-40 a kg, while open market prices in eastern region are hovering around Rs 22-23 per kg.

These traders are holding large quantity of sugar in Tripura, Guwahati, Kolkata Alipur and Ghaziabad. Traders and some stockists in the region are holding about seven lakh tonnes, according to one estimate.

"Such huge quantity can be easily diverted to Bangladesh as there is no restriction on any trader or stockists. Any trader can hold any amount of quantity, after buying sugar from mills through tender," Mr Kanhaiyalal Gidwani, Shiv Sena leader and ex-director, FCI, said.

These traders are normally buying big quantity from major supplying states such as Maharashtra and Karnataka.

"I have taken up this matter with the Union Home minister, Mr Shivraj Patil, to stop this illegal trade through Indo-Bangla border," he said.

"Local prices in Mumbai market have moved up by Rs 2 a kg in last month due to reports of sudden good demand from eastern region. However, there is no shortage of sugar in the domestic market as the Government has so far announced 43.25 lakh tonnes for the summer months (Apirl-June), he said.

The Union Government has announced total free sale quota of 42 lakh tonnes for the three months (April-June). Apart from this, the Government has also released 1.25 lakh tonnes last month as additional free sale quota for the sugar mills of Punjab, Haryana, Uttaranchal, Bihar and Uttar Pradesh.

Bangladesh has produced about 1.60 lakh tonnes in 2004-05 as against annual demand of nearly 12 lakh tonnes. However, the Government has not imported sugar through the official route since the middle of last year.

More Stories on : Economic Offences | Sugar | Politics | Exports & Imports

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page